{"id":133038,"date":"2023-03-17T17:44:22","date_gmt":"2023-03-18T00:44:22","guid":{"rendered":"https:\/\/www.lankaweb.com\/news\/items\/?p=133038"},"modified":"2023-03-17T17:44:22","modified_gmt":"2023-03-18T00:44:22","slug":"central-bank-disputes-fitch-solutions-forecast-on-rupee","status":"publish","type":"post","link":"https:\/\/www.lankaweb.com\/news\/items\/2023\/03\/17\/central-bank-disputes-fitch-solutions-forecast-on-rupee\/","title":{"rendered":"Central Bank disputes Fitch Solutions\u2019 forecast on rupee"},"content":{"rendered":"<h2><span style=\"color: #0000ff;\"><em>Courtesy Daily Mirror<\/em><\/span><\/h2>\n\n\n<p>Disputing the grim forecast of Sri Lanka\u2019s exchange rate by Fitch Solutions by the year-end, Central Bank Governor Dr. Nandalal Weerasinghe raised concerns on the basis of the forecast while stressing that such long-term predictions on exchange rate are not prudent.<\/p>\n\n\n\n<p>Fitch Solution recently maintained its forecast for the rupee to weaken to a record low of 390 per dollar by the year-end despite the positive prospects of the country securing the US$ 2.9 billion International Monetary Fund (IMF) bailout package.<\/p>\n\n\n\n<p>Dr. Weerasinghe noted that annual debt service obligation to the tune of US$ 6 billion until 2029&nbsp; has been one of the assumptions of this forecast. However, he stressed that such a high figure of foreign debt servicing is unlikely given that the country is engaged in debt restructuring negotiations.&nbsp;<\/p>\n\n\n\n<p>Further, he opined that such a long-term prediction on an exchange rate of a currency is not practical.<\/p>\n\n\n\n<p>Referring to the recent appreciation of the rupee, he remarked that the market will adjust to a new rate and if the need arises, the CB stands ready to intervene in the forex market in a limited capacity.<\/p>\n\n\n\n<p>We have a small market, that\u2019s why the exchange rate fluctuates a lot. That\u2019s why the CB is required to intervene in the market to a certain extent. However, the CB would not act against the direction of market forces,\u201d he stressed.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Courtesy Daily Mirror Disputing the grim forecast of Sri Lanka\u2019s exchange rate by Fitch Solutions by the year-end, Central Bank Governor Dr. Nandalal Weerasinghe raised concerns on the basis of the forecast while stressing that such long-term predictions on exchange rate are not prudent. Fitch Solution recently maintained its forecast for the rupee to weaken [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"","sticky":true,"template":"","format":"standard","meta":{"footnotes":""},"categories":[102],"tags":[],"class_list":["post-133038","post","type-post","status-publish","format-standard","hentry","category-economy"],"_links":{"self":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/posts\/133038","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/comments?post=133038"}],"version-history":[{"count":0,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/posts\/133038\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/media?parent=133038"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/categories?post=133038"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/tags?post=133038"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}